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Real Estate Roundup: Self-Storage Transactions December 2015

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Update 12/15/15 – Here are additional real estate transactions that have taken place in December.

Storage Express, which operates self-storage properties in five states, acquired By-Pas Storage in Muncie, Ind. The 25,000-square-foot facility at 4440 E. Centennial Ave. is just off the Muncie Bypass at Indiana State Road 67. Storage Express plans to upgrade the property with new access control, lighting and other amenities common to its portfolio.

Longtown Self Storage, a 60,250-square-foot self-storage facility in Columbia, S.C., sold for more than $67 per rentable square foot to an investment firm based in New York. Opened in 2004, the property at 405 Longtown Road sits on more than 5 acres and features nine buildings offering 440 storage units.

Dale C. Eisenman, president of Hilton Head Island, S.C.-based Midcoast Properties Inc., represented the seller.

ABM Self Storage, a 59,562-square-foot self-storage facility in Asbury, N.J., sold for $4.6 million to a limited-liability company. Situated on 5.8 acres, the four-building property at 190 New Jersey Highway features 400 storage units.

Anthony Asencio, Alan Cafiero, Michael Mele and Ben Sgambati in Marcus & Millichap’s New Jersey office represented the buyer and seller, a developer, in the transaction.

Extra Space Storage Inc., a publicly traded, U.S.-based self-storage real estate investment trust and third-party management firm, purchased Del Sol Self Storage in San Diego for $9.5 million. The seller was M4 Management Inc., a property-management company based in Beverly Hills, Calif. The two-story property at 3055 Del Street has nearly 60,000 net rentable square feet of storage space as well as 73 RV- and boat-storage spaces.

Stephen Grossman, senior vice president of NAI Capital Self Storage Investment Group, represented the buyer and seller in the transaction.

Stow-A-Way Mini Storage in San Rafael, Calif., sold for $1.6 million to The Hines Family, a local self-storage operator. The two-story property at 616 Canal St. is on the San Rafael Creek, an inlet that leads to the San Francisco Bay. It comprises 12,984 rentable square feet of storage space in 166 units. The facility also has six boat-parking spaces, a boat dock with two slips and a one-bedroom residence.

The seller was represented by Tom De Jong, vice president of commercial real estate firm Colliers International and a broker affiliate of the Argus Self Storage Sales Network.

Bline Investments purchased two self-storage properties in Cortez, Colo. The acquisition included High Country Storage at 27518 E. Highway 160 and Triple Six Storage at 12450 Highway 491. Combined, the properties comprise 74,050 square feet of storage space on 18.85 acres.

The seller was represented by Joan Lucas of Joan Lucas Real Estate Services and an Argus broker affiliate in Colorado.

Iron Guard Storage LLC, which operates 22 self-storage facilities in seven states, has purchased an iStorage property in Montgomery, Ala. The facility at 4176 Troy Highway comprises 135,800 rentable square feet of storage space in 949 storage units spread over two locations, according to an Argus press release.

The seller was represented by Bill Barnhill and Stuart P. LaGroue Sr. of Omega Properties Inc., and broker affiliates for Argus in Alabama, Louisiana and Mississippi.

Killeen Self Storage in Killeen, Texas, sold to a private investor. The property at 5400 E. Central Texas Expressway comprises 84,588 square feet of storage space.

The seller was represented by Steve Mellon and Brian Somoza, managing directors of the National Self Storage Team for JLL (Jones Lang LaSalle) Capital Markets.

Self-storage REIT Public Storage purchased Pearland Storage @ Southfork in Marvel, Texas, from Excel Commercial. The property at 2930 Country Road 59 comprises 71,715 square feet of storage space.

The seller was represented by Mellon and Somoza.

Self-storage REIT CubeSmart acquired Eagle Rock Self Storage in Roseland, N.J. The property at 465 Eagle Rock Ave. comprises 51,891 square feet of storage space.

The seller was represented by Mellon and Somoza. Tom DiMicelli, executive vice president in JLL’s Melville, N.Y., office assisted.

Argus is a Denver-based network of real estate brokers who specialize in storage properties. Formed in 1994, the company has 36 broker affiliates covering nearly 40 markets.

CubeSmart owns or manages 629 self-storage facilities across the United States. Its operating portfolio comprises 42 million square feet.

Headquartered in Salt Lake City, Extra Space owns or operates 1,335 self-storage properties in 36 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 885,000 units and 99.8 million square feet of rentable space.

Based in Winter Garden, Fla., and founded by CEO Chris Miller in 2010, iStorage operates more than 60 self-storage facilities 11 states.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s Capital Markets team comprises more than 1,700 specialists worldwide.

Midcoast Properties offers brokerage services to self-storage owners and investors in Georgia, North Carolina and South Carolina.

Based in Irvine, Calif., NAI Capital specializes in the acquisition, development and sale of self-storage properties in California and Hawaii.

Based in Glendale, Calif., Public Storage has interests in 2,266 self-storage facilities in 38 states, with approximately 147 million net rentable square feet.

Founded in 1992, Storage Express owns and operates self-storage properties in Illinois, Indiana, Kentucky, Ohio and Tennessee. 


12/3/15 Self-storage properties are constantly changing hands, and Inside Self-Storage is regularly notified of these market transactions. Many are covered in detail on the ISS website and available for viewing on the “Real Estate” topics page. Following are additional acquisitions and sales that weren’t covered independently due to missing information such as buyer, seller, sale price or other relevant details.

Southern Self Storage purchased Cocoa Beach Self Storage in Cocoa Beach, Fla., for $3.3 million. The property at 14 S. 20th St. comprises 28,730 square feet of storage space in 318 units. Built in 2009, the three-story building also has 5,000 square feet of solar panels. It’s less than a mile from Patrick Air Force Base and 200 yards from the Atlantic Ocean. Plans are underway to add building improvements including a covered drive-up area, according to a press release.

The buyer and seller, a financial institution, were represented in the transaction by Michael A. Mele, senior vice president investments in the Marcus & Millichap Tampa, Fla., office and senior director of the firm’s National Self Storage Group, as well as Luke Elliott, an associate, also in the Tampa office.

Out-Back Self Storage, a 23,750-square-foot facility in Dunnellon, Fla., sold for $1.5 million to a private investor. The property at 19545 W. Highway 40 sits on approximately 3.32 acres. Constructed in 2006 and expanded in 2009, it has 219 units, perimeter fencing and gated access. It’s less than a quarter mile east of U.S. Route 41.

The buyer and seller, also a private investor, were represented by Elliott, Mele and Brian Baldwin, an associate in the Marcus & Millichap Tampa office.

Value Self Storage in Port Charlotte, Fla., sold to a private investor for $1.9 million. The property at 23227 Freedom Ave. comprises 35,758 square feet of storage space in 687 units, which includes parking for boats and RVs. Constructed in 1984 and expanded in 1997, the facility sits on 2.8 acres.

The seller, a private investor, and the buyer were represented by Mele. Baldwin also represented the buyer in the transaction.

Gap View Storage in Wind Gap, Pa., sold for $2.2 million to a local investor. The property at 455 Kromer Road features 13 single-story buildings comprising 57,220 square feet of storage space on 6 acres. It also has available land for future expansion. Opened in 1987, the facility offers drive-up and climate-controlled units as well as outside vehicle parking. Recent site improvements include a new gate controller, video cameras and vertical gate. The property is near Pennsylvania Route 33, the main artery connecting Allentown, Pa., and the Poconos Mountains.

“The sellers built, owned and operated Gap View Storage from the inception of the business. The facility is in exceptional condition, and pride of ownership is evident throughout the site,” said Kevin Bledsoe, brokerage advisor for Investment Real Estate LLC (IRE), which represented the seller in the transaction. “The sellers had been contemplating retirement within a few years, but they understood that the value of their asset is at its peak today and wanted to take advantage of positive market conditions. The buyer has facilities in the vicinity of this site, and they were happy to have a great property that fits nicely into their existing portfolio.”

Harrisburg Self Storage in Harrisburg, Pa., sold for $140,000 to an international private-investment group. The property at 22 Kline Plaza is in the lower level of Kline Village Shopping Plaza and across from Harrisburg High School. It’s in a leasehold interest in the shopping center, with a lease in place through June 2025, according to an IRE press release.

The facility encompasses 11,667 square feet of interior climate-controlled space. The office, elevator and loading area are on the first floor of the retail plaza. Customers can access the property through a keypad entrance or the rental office six days a week.

“The minimal down payment, seller financing and leased real estate format were all selling points for the international buyer, who specializes in non-traditional transaction structures. The investment group was happy to acquire a property that fits their unique business model as they continue to grow their portfolio of self-storage properties,” said John H. Gilliland, CEO and president of IRE.

Cool Springs Storage in Franklin, Tenn., was purchased by an affiliate of The Natchez Group, a local firm, and Memphis, Tenn.-based Absolute Storage Management (ASM). The 55,000-square-foot property at 258 Mallory Station will undergo upgrades to its gate system, office and security, according to an ASM press release. The acquisition was financed by Memphis-based Jernigan Capital, a merchant bank and advisory firm serving the self-storage industry.

“This is a great location with below-market rents and occupancy, badly in need of some TLC. It also has a potential expansion component that we will explore,” said ASM President Michael Haugh.

Phoenix-based U-Haul International Inc. acquired Commerce Park Storage in Hidalgo, Texas. The property at 1124 N. International Blvd. comprises 45,424 net rentable square feet of storage space in 270 units, outdoor parking and warehouse space.

John Arnold, Bill Bellomy and Michael Johnson of Texas-based Bellomy & Co. represented U-Haul and the seller, an Austin, Texas-based company.

Affordable Self Storage Fall Creek in Humble, Texas, sold to a Dallas-based self-storage investor. The property at 8569 E. North Belt Drive is about 20 minutes from downtown Houston. Built in 2005, it comprises 39,875 net rentable square feet of storage space in 319 units and has 3 acres for future expansion.

The buyer and seller were represented by Arnold, Bellomy and Johnson.

National Storage Affiliates Trust (NSAT), a Maryland-based real estate investment trust (REIT) specializing in self-storage, purchased I-20 Self Storage in Forney, Texas. The property at 9600 Helms Trail encompasses 52,600 net rentable square feet of storage space in 484 units.

Arnold, Bellomy and Johnson represented NSAT and the seller, a Dallas-based company.

Founded in 2002, ASM owns and manages 85 self-storage facilities throughout the Southeast. The company is actively seeking to expand its portfolio through traditional third-party management relationships and acquisition/joint-venture opportunities. It has regional offices in Atlanta; Charlotte, N.C.; and Jackson, Miss.

Bellomy & Co. is a commercial real estate brokerage company focusing on the sale of self-storage, industrial, office and retail properties nationwide. It has offices in Austin, Houston and Lubbock, Texas.

Since its inception in 1998, IRE has provided brokerage, construction, development and management services to self-storage owners and investors. Its construction arm was founded in 2000 and has built more than 2 million square feet of self-storage space in eight states.

Marcus & Millichap is a commercial-property investment firm with more than 1,500 investment professionals in offices throughout the United States and Canada. The company closed more than 7,600 transactions in 2014 with a value of approximately $33.1 billion.

Headquartered in Greenwood Village, Colo., NSAT is a self-administered, self-managed REIT that operates nearly 400 self-storage facilities comprising 21 million net rentable square feet. The company is owned by its affiliate operators, who are contributing their interests in their self-storage assets over the next few years as their current mortgage debt matures.

Florida-based Southern Self Storage was founded in 1985 by owners Peter Cowie and Robert McIntosh. The business partners also operate three Northern Self-Storage facilities in the Ontario, Canada, market.

Established in 1945, U-Haul has more than 44 million square feet of storage space at more than 1,200 owned facilities throughout North America.

Sources:

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